A small business grant is a vital source of funding to help people start small businesses and receiving such assistance comes as great news to many entrepreneurs. However, to most people, it finds them unprepared, and with no idea on how to spend the grant money.
Without the right knowledge, you as a small business owner may end up spending it on things that you did not need in the first place and this will undoubtedly result in you not being able to obtain things that you did need.
Grants for small businesses require you to be disciplined and to have an idea of what aspects of your business needs funding to help your business grow. You should have a plan regarding what elements to fund and the amount of money to channel to each. This way you will be able to use the small business grant money wisely. The following are 5 smart things to spend your small business grant on.
1. Purchasing inventory
Inventory includes raw materials used to make products or even goods and materials that businesses acquire and resell. This is very important for small businesses since it means the ultimate livelihood of your company as it is the primary revenue earner for your business.
For ongoing small businesses, inventory control is essential because it entails replenishing stock, trying out new products, and cutting ones that are not selling so you can put that money towards ones that will. Your inventory must meet the demands of your customers as you will be sorely disappointed if a customer attempts to make a purchase and you are sold out of the desired product or do not have enough to accommodate a larger order.
2. Buying equipment
All types of businesses require equipment to operate. A laptop is a smart option since it is portable and can allow you to do your job anywhere you are. A computer will also improve the operations of your business by allowing you to communicate via email with customers and order inventory more efficiently. A multi-function printer can also be purchased with this machine offering you printing, copying, faxing, and scanning capabilities. This will allow you to better communicate with clients and service providers in a way that can result in smoother business operations.
While less expensive then office technology, your small business grant can also be used to replenish supplies of paper, pens, toner, and furniture such as desks and chairs that will give your office space a professional, elegant appearance.
3. Marketing
Marketing is important for the growth of any small business and spending your small business grant on marketing will help in getting new customers as well as keeping the ones you already have. Depending on your type of business, you can decide to use online advertising such as the use of social media, email, pay-per-click, or content marketing just to name a few.
You can also choose to market using offline means such as using local newspapers, billboards, magazine ads, and posters. These types of marketing strategies have been used for quite a few years and have proven to be effective. No one can buy your product or service if they are unaware of its existence and marketing can help by spreading awareness.
4. Cover operating expenses
Every business requires money to pay for their day-to-day expenses. Expenses for telephone, internet, utilities, maintenance, licenses, and salaries are required to ensure that your business operates successfully and you can use your small business grant to help with these obligations. Sometimes sales ebb and flow with business being stable at some times of the year and slow during others. The grant can be used to build a cash reserve for your business for any unexpected expenses that come up and money from sales may not be readily available.
5. Paying debts
You have been successful in achieving your ultimate goal of starting a small business and even if the capital that was needed came from your savings, you probably still had to take on a little bit of debt to get started. Your small business grant can be used to pay any outstanding debts. This will help to establish a good credit rating for your business.
Eliminating any debt will allow you to put your hard-earned dollars towards other things such as new inventory or expanding your operation. The quicker you pay off debt, the quicker you can start earning noticeable profits and using your small business grant is a great way to do this.
